A Study in Sumbawa Regency: Dissolution of Cooperatives According to The Indonesian Legal System

Based on the basic foundation of cooperatives, many cooperatives have sociologically been formed or established in Indonesia. Based on the data, the number of cooperatives that have been formed in Indonesia is 21,135 cooperatives. Moreover, the number of cooperatives in West Nusa Tenggara is 4,049 cooperatives consisting of cooperatives that are still active as many as 2,385 cooperatives and those that are inactive as many as 1,664 cooperatives. Meanwhile, the number of cooperatives in Sumbawa Regency is 394 cooperatives which include cooperatives that are still active as many as 209 cooperatives and those that are inactive as many as 185 cooperatives. This study aims to analyze and determine the dissolution factors of cooperatives in Sumbawa Regency. The results of this normative-empirical study showed that the dissolution factors of cooperatives in Sumbawa Regency were due to 3 (three) reasons: they did not hold a member meeting for 2 (two) consecutive years, members of cooperatives that made loans did not make payments so cooperatives cannot operate properly, and lack coordination between the cooperative members. The procedure for dissolving cooperatives based on Law No. 25 of 1992 is decided based on the decision of member meetings or government decisions. The decision to dissolve a cooperative by the government is carried out if there is evidence that a cooperative does not fulfill the provisions of Law No. 25 of 1992 in which its activities are contrary to public order and/ or morality and its survival is no longer expected